Joyce,age 40,and Sam,age 42,who have been married for seven years,are both active participants in qualified retirement plans.Their total AGI for 2016 is $120,000.Each is employed and earns a salary of $65,000.What are their combined deductible contributions to traditional IRAs?
A)$0
B)$3,000
C)$4,000
D)$8,000
E)None of the above

Question

Quizplus · Accepted Answer

Since both Joyce and Sam are active participants in qualified retirement plans and their AGI exceeds the phase-out limit for deductible IRA contributions for married couples filing jointly in 2016, they are not eligible to make deductible contributions to traditional IRAs.

Joyce,age 40,and Sam,age 42,who Have Been Married for Seven Years,are